Energy services firms Saipem and Subsea7 have reached an agreement on the key terms for possible merger of the two companies under one unit to be named Saipem7, whose combined backlog would
Energy services firms Saipem and Subsea7 have reached an agreement on the key terms for possible merger of the two companies under one unit to be named Saipem7, whose combined backlog would be over $45 billion.
Saipem and Subsea7 shareholders will own 50% each of the share capital of the combined company, whose revenue is expected to be around $20.9 billion, and core earnings in excess of $2 billion.
Saipem7 will become a global organization of over 45,000 people, including more than 9,000 engineers and project managers.
Subsea7 shareholders will receive 6.688 Saipem shares for each Subsea7 share held. Subsea7 will distribute an extraordinary dividend for an amount equal to $470 million immediately prior to completion.
The combined company will be listed on both the Milan and Oslo stock exchange.
Siem Industries, a shareholder of Subsea7, as well as Eni and Cassa Depositi e Prestiti (CDP Equity), which are the shareholders of Saipem, have expressed their strong support and intend to vote in favor of the transaction.
As part of the agreement, the combined company’s Chairman will be designated by Siem Industries while the CEO will be designated by CDP Equity and Eni.
In addition, it is currently envisaged that
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